tv Boom Bust RT April 30, 2019 7:30pm-8:00pm EDT
it affects you this is boom bust i'm kristie i here in washington d.c. coming up political turmoil and sanctions are affecting the worldwide or oil landscape energy historian doug ellin boss and energy policy analyst bill had a minute joins us to drill into the issues at hand plus it's another big earnings week with general electric and google's parent company also that reporting we'll sift through the numbers of these market giants and finally the u.a.e. has become a major player for president currency tokens sales crypto currency analyst taylor a lot of men will stop by to talk about how regulation is affecting the sector and how quick those are holding up worldwide all that directly ahead but first let's have some headlines. the entry of a new major player in the fight to acquire anadarko petroleum reserve global report today as berkshire hathaway prepares a ten billion dollar intervention on the side of occidental occidental made a third. eight billion dollar bill last week interrupting advanced merger talks
between anadarko and rival chevron now occidental has a big name with deep pockets on their side should they decide to top chevrons thirty three billion dollars bid by a greater margin occidental is successful and willing anadarko berkshire will invest the ten billion dollars into one hundred thousand new preferred shares of oxy stock the annual dividend would be eight percent the wall street journal reports that a successful bid by occidental would grant berkshire the opportunity to buy up to eighty million occidental at sixty two dollars and fifty cents a share today occidental stock fell before rise rallying above fifty nine dollars by early afternoon and a dark zero has been trending higher over the past week and was pushing towards seventy three dollars in afternoon trading. the oil markets are clearly having a huge focus right now and we anticipate a higher consumption in the house summer driving months u.s.
sanctions on iran oil planned for may on top of the earlier ban in mina's wailing crude are driving up prices for scarce or barrels but consumers are resisting the higher prices and holding back the standoff comes from uncertainty of just how much arraigning could may still flow to its top consumer china after may analysts expect china to flout restrictions and lift its imports from sixty thousand barrels per day to one million while export another five hundred thousand barrels per day under the sanction radar buyers are counting on this and it would make it harder for sellers to maintain their higher prices here to give us a full story is energy historian doug ellin boss and bill had are men senior fellow at the university of pennsylvania climate center for energy policy. the buyers are betting that these high oil prices are temporary that they can rely on china's exports to push back down push it back down one. we think.
well the prices that people are getting the production has been cut back a little bit by saudi arabia and russia to maintain prices and so china likes the idea of trying to draw the prices down but that usually comes by having a lot of production or lot of consumption increasing consumption would drive the prices down. so bill there are already expecting china to not really comply with the sanctions they have a lot of buying power is out there some of the u.s. is biggest clients for liquefied natural gas why can the u.s. do about it if anything at all. thanks kristie and sorry to be mean you're under such circumstances here but. i think that the sanctions around iran sanctions. the u.s.
knew would be difficult to enforce but most strategist find that it's easier to stand up to u.s. military power than to the sanction power and i think that china will try to find a way around the sanctions but i suspect that this will be part of much broader negotiations between the u.s. and china and. as you say china's purchase of l. and g. is another part of that. the deals between china and iran and by land versus by by crude. carriers is another area where. one is a lot easier to track than the other. and i think that they'll be
negotiations around this have been around so many issues between the two countries right now. i would say that. i would probably disagree with you about the way to lower prices would be more more consumption i mean you might be able to get some kind of bargain on unit price but usually. an increase of prices in global energy markets. and the u.s. had when they actually do because if china's not going to be punished for their actions then what's stopping them from just starting the sanctions. well the sanctions the sanctions can be pretty. potent on the companies or the individuals upon which they are imposed and
while the sanctions at the governmental level against china ones that will be. offensive if you will to china the ones of around individuals who are not cooperating with the point of the sanctions. could be quite serious penalties that's why you're seeing the actions in western europe that are now you know there are countries here who are not particularly aligned with what the u.s. is. trying to do here but the companies cannot afford to oppose the demands of us in this area because it is the financial transactions they need to do to conduct business i think china will in the long run try to have greater freedom around. those issues but right now they may have to pay attention at least and
so i think i think it will be a negotiation and hopefully can come out in a way that each side can accept. back to you the u.s. sanctions also came into effect to block menace whale eyes oil exports in the hopes of toppling president nicolas maduro oil accounts for right now ninety six percent of all of its exports and the country is already facing major economic crisis inflation could soar up to ten million percent this year opposition leader one call for military backing to rule but materiel seems to have the military leaders loyalty how do you see this entire situation playing out is escalating very rapidly . venezuela currently has significant problems maintaining their oil production and the u.s. is making it even worse they've had an infrastructure that has been decaying for a long time and that's what really has driven their production down you know the
united states is trying to prevent additional production and to damage the duro. regime and it is difficult to see how venezuela can profit export oil or turn this around once there is a new regime because their oil production and infrastructure is decayed so much. bill as we were talking china and india are two of the most impacted by. the iranian sanctions and to counteract that they're setting up an oil as buyers club on to kind of get them a say in pricing in the sourcing of crude oil give us the details on that so the idea of a buyers club as a way to counteract some of the market. makes some sense i would expect that india and china would try to include other by nations in asia certainly south
korea and japan makes sense to be. in a group by like that over the long run oil markets have penalized asia and they're basically was a mark up that counted for billions of dollars each year that were more than one would expect from the smooth functioning oil market pricing that would have come from the bread prices in the us prices and the transport costs to move to the destinations so make sense for those countries to be at least communicating amongst each other and i think that it it will be of some help i don't think i mean opec's power is pretty limited the secretary general of opec spoke recently to syria meetings. and he was pointing out that
opec is really seeking price stability more than trying to exercise any kind of. ballistic power and i think seeking that same sort of predictability on the buyer's side makes sense to. a buyers club seems to be the only answer to our pack which is essentially a big sellers cartel saudi arabia recently announced that they will not rush to the oil production to make up for iran's loss and that will they will instead stick to the global oil production. which could extend to the end of twenty nineteen they currently don't see any shortage in global all supply but opec supply right now has hit a four year low in april analysts are now speculating that saudi arabia isn't on board with raising well production how did the u.s. back itself into a corner here. the opec nations along with russia it's in their interest to try and stabilize the market to try and keep
the prices where they need to be so many of these nations need that oil revenue to stabilize keep their economies stable and so they are highly motivated to limit production to keep the prices high the problem what happens is that with all the geopolitics sometimes the market can gyrate based on a few simple statements by people in power and that can send the price up by a couple dollars or down by a couple dollars so i think. the producers and the sellers would like to keep that price stable or slightly higher and control that by limiting the production crissy could i just said a point on that chart so this ties back to your first question about the
temporarily high prices heavy crude is normally less than light crude but at the moment people are willing to pay more for the heavy because the refinery is set up to process the heavy so if they have to change that kind of crude they're dealing with that becomes a problem for the economics of the refinery so that ties into that that part of the market dynamic here thank you so much for and energy historian doug. and bill hader men senior fellow university of pennsylvania climate center for energy policy thank you so much welcome thank you. turning to the earnings report beat out of a disappointed investors after they report a less than stellar earnings after hours on monday google's parent company didn't
meet initial projection as their major sells can't category perform worse than expected alphabet report of first quarter earnings of six point sixty six billion or nine dollars and fifty cents per share on revenues of twenty nine point four eight billion sales grew by just sixteen point seven percent down six point seven percent year over year the tech giant's arnie's would have been eleven point nine dollars per share if not for the one point seven billion dollars fine in europe due to their shady online advertising practices following the report out of about stock opened down just over one hundred dollars or roughly eight percent. general electric shares spiked tuesday following their better than expected earnings report g.e. reported a revenue of twenty seven point three billion versus the expected twenty seven billion or a gain of fourteen cents per share versus the expected nine cents a share the positive report comes as g.e.
and now that they've burned less cash than initially expected only going through one point two billion the company warned last year that they anticipated their cash flow good by as much as two billion this year executives with g.e. also claim the problems with the boeing max fleet could delay nearly two hundred and twenty four million in cash flow in the second quarter of this year. on the news shares of g.e. were up nearly four percent from monday's close peaking at just over ten dollars and forty cents a share. time now for a quick break but hang here because when we return the united arab emirates has become a major player for crypto currency token sales currency analyst taylor a lot of men will stop by to talk about how regulation is affecting the sector and how credit does are holding up worldwide and as we go to break here are the numbers at the club.
my son doing drugs my nephews was still in drugs my sister just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abuse he started going after the users in the prison population sewer we started treating sick people people who are addicted to these drugs like criminals while i was on the hill i increasingly became convinced that the war on
drugs was a mistake there are countless numbers of people who are in prison for. sentences for boring or minor offenders in the drug trade it's a lot watching your children grow up and miss you in wave and say by day as you're walking out of a business it's just it doesn't get easier. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race off and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. i need to know more of the. underwater. total room.
not. all your. post pieces that move for your. welcome back. china the asian powerhouses latest purchasing managers' index shows another fall in manufacturing activity after surprising many expert observers and hitting a six month high in march of fifty point five the latest figures from china's national bureau of statistics shows the p.m.i. falling back in april to fifty point one is that p.m.i. a number below fifty indicates a contraction in activity and above that the register's growth near the end of
twenty eighteen signs of a chinese slowdown seemed to be accumulating the march p.m.i. and other positive figures shifted some expert assessments of china's economic trends for twenty nineteen in a more positive direction now the latest figures suggest a more muddled path for the middle kingdom in two thousand and nineteen perhaps delivering a slow recovery rather than a mild contraction. taking a big leap across the pacific from china to mexico that country also has turned in some surprisingly weak numbers mexican g.d.p. contracted by point two percent in the first quarter of this year delivering a very unwelcome surprise to president andres manuel lopez obrador who took office in december the disappointing first quarter of twenty nine thousand figure follows a meager point six percent growth of g.d.p. for q four of twenty eighteen. on another front mexican action also contracted in the first quarter by point six percent more hopefully mexican agriculture which.
has focus on revitalizing shows signs of life with two point six percent growth in the first three months of this year and previously stated a goal of two percent growth for twenty nineteen an average growth of four percent for his single six year term as president the latest numbers makes those goals even more ambitious and challenging. we said we wanted to hold support above fifty two hundred after forming the golden triangle in order to gain confirmation of another balrog well it has struggled and failed to hold on to gains above the fifty week at that the four hundred from here it looks like a make or break set up we could see it make another attempt to break resistance but a slew of bad news is weighing down on the short term price in particular bit the
next one of the largest exchanges has been accused by new york's attorney general leticia james of covering up the laws of eight hundred fifty million here to talk more is taylor letterman cryptocurrency analyst at simpler. now we see big point drop over five percent in a matter of minutes after this was filed as traders move to withdraw their funds from bit panics liquidity run tell us tell us what happened when the next they had this problem are ready with their last year and then they address these concerns why is it happening again. yes of but the next and other both have been releasing sort of news been coming out of them always at the wrong time right so you mention the support around to do one hundred they are going to do pretty well until that news came out so right now we're kind of taking steps back and waiting for more information is that the next tether scandal to go out of resurface again so what we're seeing is a loan from one company but the next into other shifting back and forth between hands and then what we really want to pay attention to in this situation is the
payment processor the processing company behind both of these companies which is a crypto processing company that has been seen as sort of the main problem by those who capital those funds were seized by the u.s. in a couple other countries that provoke capital is holding for a bit the next and so the next had to take a loan from another company to cover a loss to either be in that other company that they can operate closely with sister companies and so we're watching right now is was going to come out of this suit and what allegations are effects untether will be able to kind of subside as a report back some documentation so there's still a lot to be seen but still has really shook the market as we can see with the price of big point appears rally now but we still see a very high premium on big queen and the u.s.d. pairing on so we're still waiting for that premium to shrink back down to what we're seeing on other exchanges like when baser gemini some u.s. exchanges so it's clear that the u.s.
is attempting to really read try to regulate the industry on the one hand it's a really good thing as it's protecting the consumers from fraudulent behavior but on the other it can be pretty overbearing and in a new emerging industries such as it could result in a lot. lost opportunities earlier this year we witnessed bittorrent i.c.l. a widely anticipated event that raised seven point two million dollars in fifteen minutes it subsequently traded and gain over six hundred percent and that was highly profitable for some traders but unfortunately this i.c.l. was not open to us citizens and we missed out is this fair. i think i don't think it's mostly unfair overseeing is sort of the regulatory pressure being put on the i c o's so we've seen those dampening to twenty nineteen we've seen a lot less of those expressions of ones available to us investors what we're seeing now is sort of a disguise of the i.c.a.o. we're seeing a slight difference for region into it we had these exchanges releasing tokens as an initial exchange offering so they're releasing these tokens and investing via
the exchange token so the exchanges are now be able to take a little cut of that but also open up to their customers who they already have sort of verified their country of origin as well as whether a credit vest or not so i think exchanges are doing a sort of a better way than we saw previously where these companies are releasing their own tokens so the exchanges are doing the due diligence and so on but i still think i.c.a.o. is in a lot of these i.e. those are still going to be a lottery ticket and i think it's good that u.s. investors are kind of protected from that and going to see that as a compromise between security and convenience so the compromise between having these exchanges not allow customers in the u.s. to invest in i think it's i think is a ok deal so that you as was dominating these token sales but however due to the regulatory climate we see a lot of these companies actually move away the u.a.e. is now the world's biggest contributor to these crypto token sales raising two hundred ten million since the start of twenty nineteen so the u.s. has now fallen to sixth place and the u.a.e. is surging and this is very sudden the new feature in the top ten countries for
digital token sales in twenty nineteen how is the u.s. expected to compete and remain a leader in the industry when it's innovation is leaving its shores. i think how we . can be here in the us is going to be through working with enterprise companies developers and so i don't think we actually have to compete on the investment side of things so much as we need to compete on the people that are actually working in building the the. same protocols and working on the companies and the enterprise projects to kind of expand the corporate networks and as developers or spinning ad dollars in terms of marketing and this kind of continuing to expand who's working on it i think that's where a lot of innovation economy is working to educate people on the space rather than actually putting more money into some of these projects that will just die off eventually. well it's certainly keep an eye on it right now you are a isn't first place followed by cayman island and singapore tell a lot of men come to our currency analysts assembler training thank you so much for your time. they haven't. that's it by this time you can catch
they can come and blow our brains out at any given time if we can't really do anything actually america is the only country in the world where you can kill people outside of war and legally get away with. all of the fire crawls stillbirth you all the trouble here's briefly all the points it's hollow ploy to k.k.k. want exists because america wants it to exist there's a biggest terrorist group to ever operate in this country and they're dead to me they're worse off than the people who destroyed the world trade centers of the scroll white. light. seemed wrong when old world just don't hold. any. to get to shape
out these days to come out to and engage with equals betrayal. when so many find themselves worlds apart we choose to look for common ground. the people that are now doing those manufacturing jobs also start end of it because that's where the innovation happens on the factory floor so the factory floor is been moved to china as you point out china and we moved all our jobs manufacturing over china now all the innovations in china so we don't it's not it's not created in california built in china is going to be created in china built in china. is this is a stick of water bottle found in the stomach of the fish the brand is part of the coca-cola company which sells millions of bottles of soda every day the idea was
that let's tell consumers there are the bad ones there the litterbugs are trying this way industry should be blamed for all this waste the company has promised to reuse the plastic. mainly. because the only. thing you special projects funded. on. but for now the mountains of waste only grow higher. up front row but there's a bit that is still going to go to school he. says labels a little. i use this it won't go go.
you. our hope is that we can get a stranger in the regime. caracas as soon as possible so that venezuelans can return and help rebuild their country. the u.s. backs the venezuelan self-proclaimed interim president. as he calls for a military uprising while the government in caracas says it is putting down a coup attempt. the russian national jailed in the us for working as an unregistered foreign agent has been fielding reporters' questions maria boots and i explained how she was briefly quizzed by the investigation and how she.